Power Outages, Increasing Block Tariffs and Billing Knowledge
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PH.D. THESIS ECONOMIC STUDIES NO. 235 ISBN 978-91-88199-27-0 (printed) ISBN 978-91-88199-28-7 (pdf) ISSN 1651-4289 (printed) ISSN 1651-4297 (online) TENSAY HADUSH MELES holds a BA in Econ. from Mekelle University and MPhil from the University of Oslo. He will join the Department of Economics at Mekelle University as an Assistant Professor. While access to electricity has received a great attention, its reliability has been given less focus. In developing countries, those with access to electricity experience frequent power outages. In chapter I, we use data on defensive expenditures and willingness to pay to analyze households’ preferences for improved electricity services in Ethiopia. The study highlights the importance of a reliable electricity supply to have a sustainable energy transition and enjoy the benefits of access to electricity. Many electric and water utilities in developing countries use increasing block tariff (IBT) structure as a tool to encourage resource conservation, recover costs, and subsidize low-income consumers. However, it is not clear whether consumers respond to marginal prices under IBT. In chapter II , we provide empirical evidence that residential electricity consumers do not respond to marginal prices in an IBT structure. Chapter III examines a related issue – the effect of educating consumers about how their monthly bill is computed under IBT structure on monthly electricity consumption behavior. Power Outages, Increasing Block Tariffs and Billing Knowledge Tensay Hadush Meles DEPARTMENT OF ECONOMICS Tensay Hadush Meles | Power Outages, Increasing Block Tariffs and Billing Knowledge 235
Transcript of Power Outages, Increasing Block Tariffs and Billing Knowledge
PH.D. THESIS ECONOMIC STUDIES NO. 235
ISBN 978-91-88199-27-0 (printed)ISBN 978-91-88199-28-7 (pdf)ISSN 1651-4289 (printed)ISSN 1651-4297 (online)
TENSAY HADUSH MELES holds a BA in Econ. from Mekelle University and MPhil from the University of Oslo. He will join the Department of Economics at Mekelle University as an Assistant Professor.
While access to electricity has received a great attention, its reliability has been given less focus. In developing countries, those with access to electricity experience frequent power outages. In chapter I, we use data on defensive expenditures and willingness to pay to analyze households’ preferences for improved electricity services in Ethiopia. The study highlights the importance of a reliable electricity supply to have a sustainable energy transition and enjoy the benefits of access to electricity.
Many electric and water utilities in developing countries use increasing block tariff (IBT) structure as a tool to encourage resource conservation, recover costs, and subsidize low-income consumers. However, it is not clear whether consumers respond to marginal prices under IBT. In chapter II, we provide empirical evidence that residential electricity consumers do not respond to marginal prices in an IBT structure. Chapter III examines a related issue – the effect of educating consumers about how their monthly bill is computed under IBT structure on monthly electricity consumption behavior.
Power Outages, Increasing Block Tariffs and Billing KnowledgeTensay Hadush Meles
DEPARTMENT OF ECONOMICS
Tensay H
adush Meles | Pow
er Outages, Increasing B
lock Tariffs and B
illing Know
ledge
235
